Westmoreland Review

The Pennsylvania Senate has approved legislation to repeal the Regional Greenhouse Gas Initiative (RGGI) carbon tax, initially enacted through an executive order by the Wolf Administration in 2019. This development was confirmed by Senate President Pro Tempore Kim Ward (R-39), Senate Majority Leader Joe Pittman (R-41), Senate Appropriations Committee Chair Scott Martin (R-13), and Senate Environmental Resources and Energy Committee Chair Gene Yaw (R-23).

RGGI, a multi-state compact, has been criticized for potentially increasing electricity rates for consumers, cutting energy and manufacturing jobs, and leading to the closure of Pennsylvania power plants. According to critics, no new investments in baseload generation have been made in Pennsylvania since the state attempted to join RGGI five years ago.

Last year, the Pennsylvania Commonwealth Court ruled that Pennsylvania's entrance into RGGI could only be achieved through legislation enacted by the General Assembly. This ruling is currently under appeal at the Pennsylvania Supreme Court by Governor Josh Shapiro.

Senate Bill 1058, introduced by Yaw, aims to abrogate the CO2 Budget Trading Program regulation promulgated by the Department of Environmental Protection (DEP) and the Environmental Quality Board (EQB).

"Pennsylvania’s greatest asset is our ability to produce energy," Ward said. "Gov. Shapiro’s push for a carbon tax has already increased costs for Pennsylvania families who are already grappling with rising costs of food and gas." She added that RGGI would increase electric bills by 30%, eliminate 22,000 jobs, and raise product costs without significant environmental benefits.

"The RGGI Electricity Tax must be stopped," Pittman stated. "Even though the Commonwealth Court has ruled RGGI unconstitutional, Gov. Shapiro continues his push with the Supreme Court."

Martin emphasized challenges ahead in ensuring grid reliability and affordable energy: "RGGI makes it much harder for us to achieve both these goals."

Yaw argued against leaving policy decisions influenced by other states: "Leaving our environmental and economic destiny to the whims of RGGI’s New England states is just bad policy for Pennsylvania."

This legislative move follows discussions with members of Ohio's General Assembly about PJM Interconnection LLC's management of mid-Atlantic power grid reliability. PJM projects a 20% retirement of its existing capacity by 2030.

Thermal generation retirements like Maryland's Brandon Shores power plant closure pose additional risks. A Federal Energy Regulatory Commissioner recently warned that such shutdowns could lead to catastrophic scenarios.

The bill now advances to the House of Representatives.

___